Md. Code, Local Government § 20–605

(a) (1) In this section the following words have the meanings indicated.

(2) “Mobile Telecommunications Sourcing Act” means the federal

Mobile Telecommunications Sourcing Act, 4 U.S.C. §§ 116 through 126.

(3) “Service address” means:

(i) except as provided in item (ii) of this paragraph, the

location of the telecommunications equipment to which a call is charged, regardless

of where the call is billed or paid; and

(ii) in the case of mobile telecommunications service, the

location of the customer’s place of primary use as defined in the Mobile

Telecommunications Sourcing Act.

(b) (1) Except as otherwise provided in this section, a tax imposed under

this section applies to telecommunications service that:

(i) originates and terminates in Prince George’s County; or

(ii) originates or terminates in Prince George’s County and has

a service address in Prince George’s County.

(2) Notwithstanding paragraph (1) of this subsection, and except as

provided in paragraph (3) of this subsection, for a customer bill to which the

amendment made by the Mobile Telecommunications Sourcing Act applies, a tax

imposed under this section applies to mobile telecommunications service to the fullest

extent authorized under § 117(b) of the Mobile Telecommunications Sourcing Act.

(3) A tax imposed under this section does not apply to:

(i) telecommunications service provided to a person to whom

a sale of tangible personal property or a taxable service is exempt under § 11–204 or

§ 11–220 of the Tax – General Article;

(ii) a prepaid telephone calling arrangement that is taxable

under Title 11 of the Tax – General Article; or

(iii) telephone lifeline service provided under § 8–201 of the

Public Utilities Article.

(c) By ordinance, the County Council for Prince George’s County shall

impose at least one of the following:

(1) a sales and use tax on telecommunications service in Prince

George’s County at a rate not less than 5%; or

(2) an excise tax on telecommunications service in Prince George’s

County at a rate not exceeding $3.50 monthly for each telephone line.

(d) (1) A tax imposed under this section shall be itemized on each bill for

telecommunications service in Prince George’s County.

(2) Each vendor providing telecommunications service in Prince

George’s County shall collect the tax on behalf of and remit the tax to the county.

(e) (1) The net proceeds of the revenue from a tax imposed under this

section shall be used as follows:

(i) at least 90% of the net proceeds shall be used for operating

expenditures for the Prince George’s County school system; and

(ii) the remainder shall be used for:

1. cash payments for capital expenditures for school

renovation projects approved by the Prince George’s County Board of Education and

Prince George’s County; or

2. payment of debt service on bonds issued by the

governing body of Prince George’s County for school renovation projects approved by

the Prince George’s County Board of Education and Prince George’s County.

(2) The proceeds provided under this section for the Prince George’s

County school system may be used to meet the county’s funding requirements under

§ 5–235(a) of the Education Article.

(3) Among the expenditures to be funded from the proceeds, the

Prince George’s County Board of Education shall consider:

(i) a program to serve disruptive, delinquent, or low–

performing students in grades 6 through 12 that:

1. provides proof of progress in reading and

mathematics;

2. is designed to include small learning communities

and areas of support services provided by community–based providers; and

3. is operated by an educational provider with

substantial experience serving the type of student population served by the program

in separate school facilities provided by the education provider, unless the public

school system decides otherwise;

(ii) a Spanish language immersion program to serve at least

450 students in kindergarten through grade 5 in order to address long–term labor

needs for bilingual employees; and

(iii) addressing any needs related to capital improvements or

renovations that are the result of the deferral of maintenance or other deterioration

of school facilities.

(4) On or before December 31 of each year, the governing body of

Prince George’s County shall submit a report detailing the expenditure of revenues

generated from a tax imposed under this section to the Department of Legislative

Services, the Prince George’s County school system, and the Prince George’s County

Delegation of the General Assembly.